3. From the point of view of consumer surplus and producer surplus, what problem was created when Thailand subsidized the cost of energy to consumers to help alleviate the burden of higher energy costs?

It encouraged the consumption of too much fuel at the expense of other goods.

It has no effect; consumers gained consumer surplus, but taxpayers lost the same amount because they had to finance the subsidy.

It hurt the poor and benefitted the rich.

It led to less fuel being used than the amount that maximizes consumer surplus.

11. Brenda Butler, editor of the Republican, is trying to decide whether to take a job at a much larger newspaper or to become the CEO and publisher of the Republican. Brenda has to make this decision because of ________.

an opportunity

a threat

a problem

bounded rationality

12. The __________ as the number of levels in the organizational hierarchy increases.

40. Suppose that at the current price consumers would like to purchase 10 million large-screen televisions and 15 million are available. When the market coordinates the demand and supply for large-screen televisions, the price of large-screen televisions will _______________.

41. Laura has dreamed of playing in a symphony. She practices her instrument every day and yet, year after year, she cannot successfully play the difficult musical piece necessary to try out. This is an example of